Guide to Business Planning

The Ansoff Matrix or Market Options Matrix

A "usiness an "e developed in four possi"le dire tions& '( Market penetration) i(e( sell more of the same to the same market *( Produ t development) i(e( sell new produ ts to existing ustomers Existing

Products
New Product Development Sell new servi es or produ ts to existing ustomers !ith existing apa"ilities !ith new apa"ilities Diversification $elated %nrelated Market Penetration Consolidation Market penetration Sell more of the same to the same market

High Low

Markets

+( Market development) seek out new markets for existing produ ts ,( -iversifi ation) i(e( sell new produ ts to new groups of ustomers !ith all development strategies the .uestion of leverage of ore ompeten ies or resour es is ke/( The s ope for leverage is highest for a market penetration strateg/ and lowest for an unrelated diversifi ation strateg/(

New

Market Development #ew segments #ew territories #ew uses

High

Low

cope for Leverage

Guide to Business Planning

cope for Leverage

Existing